Offshore Decommissioning: Know all about it!

As oil & gas fields reach the end of the lifespan they must be decommissioned.This complex task involves a number of highly skilled workers to ensure that the wells and platforms are safely and efficiently dismantled and removed. With a huge number of offshore rigs expected to reach the end of their production cycle over the next ten years, the global need for technical decommissioning specialists is expected to keep growing, with annual spending projected to reach $13 billion within the next 25 years.

Let’s get some more details about offshore decommissioning

Decommissioning is the process of terminating the oil & gas installation at an offshore platform so as to ensure the ocean & seafloor is given back to its pre lease condition.

What does Decommissioning of Offshore platform generally entail?

• Cleansing & removing the production & pipeline risers which are supported by the platform.
• Removal of the platform from the foundation by severing all bottom founded components which is at least 15 feet below mudline.
• Disposal of the platform in a scrap yard or a fabrication yard or placing the platform at an artificial reef
• Performance of site clearance verification at the platform location to ensure that no debris or potential obstructions to the other users of ocean floor

Services offered by decommissioning of offshore O&G facility

• Project management
• Engineering & planning
• Permitting & regulatory compliance
• Platform preparation
• Well Plugging & abandonment
• Conductor renewal
• Mobilization & demobilization derrick barges
• Platform removal
• Pipeline & power cable decommissioning
• Materials disposal & site clearance

Jobs involved with offshore decommissioning

• Waste management consultants
• Surveyors
• Project managers
• Civil engineers
• Maritime engineers
• Safety engineers

Spending in decommissioning projects will see a 540% increase in spending from 2015 to 2040. In 2015, average spending in decommissioning was $2.4 Bn. But by 2040, yearly spending is set to touch $13 Bn which is on an average 540% increase which is phenomenal. By 2021, Europe will absorb approximately 50% of the global decommissioning spending as this industry is set to remove major offshore structures in the North Sea. It is one of the largest markets by value for offshore decommissioning with majority of it taking place in the North Sea.

Over the next decade across the UK & Norway

• More than 100 platforms are forecast for complete or partial removal
• Over 1800 wells are forecast for plugging & abandonment (P&A)
• Close to 7500 kilometers pipelines are lined up for decommissioning
• 16925-22775 job’s peak employment supported by decommissioning activity in Scotland over the next 10 years.

Estimated cost to UK to decommission the current offshore wind farms that are in operation off the country’s coast is 3.6 billion Pounds.